New York, Jan 23, 2026, 15:17 EST — Regular session
- NVTS slipped roughly 10% to near $10.15 in afternoon trading, pulling back from Thursday’s sharp gain
- Intel’s stock plunged nearly 18%, weighing heavily on chip sector sentiment; Wolfspeed and onsemi also fell
- Attention shifts to the Fed’s Jan. 27-28 meeting, alongside next week’s megacap tech earnings
Navitas Semiconductor shares dropped roughly 10% on Friday, retreating from a steep gain the previous day as chip stocks slipped following a cautious outlook from Intel that shook investor confidence.
The decline is notable since Navitas ranks among the smaller, high-beta chip stocks traders lean on to gauge AI-driven demand. Ahead of the Fed decision and a wave of major tech earnings, the market has swiftly pulled back from rallies in speculative semiconductor names.
Intel plunged almost 18% following a forecast that missed Wall Street’s revenue and profit expectations for the quarter. The chipmaker cited difficulties meeting demand for server processors used in AI data centers. “There is a lot more confidence in being able to put money into other areas outside of artificial intelligence,” said Michael Kantrowitz, chief investment strategist at Piper Sandler. (Reuters)
Navitas slipped $1.14 to $10.15 by 3:17 p.m. EST, following a $11.29 close on Thursday. Trading volume reached roughly 24 million shares by mid-afternoon, down from over 37 million shares the day before. (StockAnalysis)
Navitas is caught in a busy spot on the tape: MarketBeat data reveals that roughly 32% of its public float was sold short as of Dec. 31. Short interest represents shares borrowed and sold by investors wagering on a drop; rapid unwinding of these positions can intensify price swings. (MarketBeat)
Peers also dipped. Wolfspeed slid nearly 3.8%, onsemi lost around 1.6%, and Monolithic Power Systems dropped close to 2.8%. The iShares Semiconductor ETF fell about 1.4% during afternoon trading.
Navitas produces gallium nitride and silicon carbide power semiconductors, which find applications in fast chargers, data centers, solar inverters, and electric vehicles, among other sectors. (Reuters)
But the situation could backfire. Navitas pulled in roughly $100 million from a November private placement priced at $6.75 a share. The company then filed to register the resale of about 14.8 million shares — which could weigh on the stock if those holders start selling into any rally. (SEC 8-K, SEC prospectus)
Macro factors continue to dominate. Every economist surveyed by Reuters expects the Fed to maintain rates between 3.50% and 3.75% at its Jan. 27-28 meeting. “The economic outlook on the surface suggests the Fed should remain on hold,” said Jeremy Schwartz, senior U.S. economist at Nomura. (Reuters)
Traders are eyeing Navitas to see if Friday’s pullback turns into a full-blown reversal in this heavily shorted name or just another move in a choppy market. The next key test for risk appetite arrives Jan. 28, when the Fed announces its policy decision.
